BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1402
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 1402 (Dutton) - As Amended:  June 24, 2010 

          Policy Committee:                              Natural  
          ResourcesVote:7-0
                        Judiciary                             10-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Air Resources Board (ARB) to include  
          specified information in its written communications alleging  
          that a penalty for air pollution violation will be or could be  
          imposed.  Specifically, this bill:

          1)Requires ARB to include the following information as part of  
            its written communications that the board or another entity  
            will or could impose an administrative or civil penalty for  
            air quality violation, and to make the information available  
            to the public:

             a)   How the penalty amount was determined;

             b)   The provision of law under which the penalty is being  
               assessed and an explanation of why that provision is most  
               appropriate; and,

             c)   Whether the penalty is being assessed for a provision of  
               law that prohibits a specified level of emissions and, if  
               so, a quantification of the pollution emitted in violation  
               of that level.

          2)Directs ARB to report annually to the Legislature and governor  
            on imposition of air pollution penalties.

          3)Requires ARB to publish, by March 11, 2011, a policy for air  
            pollution penalties.

           FISCAL EFFECT  








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          Costs of an unknown amount, potentially in excess of $150,000  
          per year, for up to one position at ARB to include specified  
          information in written communications, to make it available to  
          the public, and to update and publish penalty policy and report  
          to the Legislature and governor.  (Air Pollution Control Fund)

           COMMENTS  

           1)Rationale  .  The author describes entities subject to ARB  
            regulation as having expressed concern over the lack of  
            information on how ARB determines and assesses penalties.  The  
            author also notes complaints about a lack of consistency in  
            penalty amounts and justifications.  The author intends this  
            bill to: (a) ensure that this information is provided to  
            alleged air pollution violators and is publicly available, (b)  
            codify some of ARB's improvements to the transparency of its  
            penalty policies, (c) provide legislative oversight, and (d)  
            ensure penalties are assessed consistently by establishing a  
            written penalty policy.

           2)Background  .  Under current law, the ARB and/or local air  
            pollution control districts are authorized to impose civil or  
            administrative penalties for a variety of violations of state  
            air pollution laws and regulations.  Administrative penalties  
            of up to $100,000 may be assessed for certain violations.  ARB  
            and the courts are required to consider several factors when  
            determining the amount of an administrative or civil penalty -  
            including the harm to the public, the compliance history of  
            the defendant, preventative efforts made by the defendant, and  
            other factors.  Fine and penalty revenues are generally  
            deposited in the APCF, where they are available, upon  
            appropriation of the Legislature, for environmental cleanup,  
            abatement, or pollution prevention, or in the General Fund.

           3)Support  .  This bill is supported by numerous industry groups  
            subject to regulation by ARB and/or local air districts, who  
            contend ARB oftentimes fails to provide adequate information  
            regarding air quality violations and inconsistently imposes  
            penalties for violation.

           4)Opposition  .  The Department of Finance was opposed to an  
            earlier version of this bill, which Finance asserts is  
            unnecessary because it duplicates actions ARB already is  
            undertaking administratively.  Finance also notes that the  








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            bill contains no new funding to pay for the workload it  
            creates, which Finance estimates will cost approximately  
            $500,000 a year-a cost estimate substantially greater than the  
            cost estimate provided by this analysis-to ensure penalty  
            communications are adequately detailed.  It is not known  
            whether Finance remains opposed to the latest version of the  
            bill, the provisions of which are similar to the version of  
            the bill Finance opposed.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081